SUBJECT
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Approve a Right-of-Way Agreement between Polk County and Wawa, Inc. in conjunction with the Deen Still Road Project. ($1,812,000 one-time expense)
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DESCRIPTION
The County has a Community Investment Project to make improvements to Deen Still Road and construct an extension of North Ridge Trail. The improvements consist of the widening of Deen Still Road from US Highway 27 to North Ridge Trail along with the construction of a new 2-lane roadway extending North Ridge Trail southerly to Waverly Barn Road. To allow for construction of the roadways, the County will need to acquire additional right-of-way and easements from impacted property owners. The Board previously adopted a resolution authorizing negotiations and written offers to be made on this project. The engineering design for the project is very nearly completed and full right-of-way acquisition is anticipated to begin later this year.
It was brought to the County’s attention that the owner of a parcel located at the southwest corner of US Highway 27 and Deen Still Road was selling the property. County staff contacted the broker representing the owner of the property, Wawa, Inc., who stated the property was for sale and that the owner would be willing to consider a sale of the entire property to the County. After reviewing the property and the plans for the road project it was determined that mainline right-of-way was needed along the northern boundary of the property and that additional right-of-way would likely be needed from the parcel to accommodate utility relocations near the intersection in conjunction with the project. Additionally, it was determined that access limitations associated with the parcel and the project would likely make the alternative of acquiring the needed right-of-way in the future through condemnation litigation result in substantial cost to the County. A purchase of the entire parcel would provide an area for staging of materials and equipment for the construction of the project in an area that is otherwise highly developed. The County hired an independent appraiser to establish a value for the property. Negotiations with the owner have resulted in a proposed purchase amount of $1,800,000 for the site, which is below the appraisal amount due to a provision in the agreement, requested by the owner, that a condition be attached to the property that it could not be utilized for a convenience store. The owner has not incurred any attorney fees or expert costs in conjunction with this acquisition. The acquisition of parcel may result in the existence of a remainder parcel after the property is utilized, which may be considered for surplus upon completion of the project.
The County Attorney’s Office and the Real Estate Services Director have reviewed the agreement and recommend approval. The alternative of acquiring the right-of-way needed for the project in the future through condemnation litigation would result in substantial cost to the County. Approving the Right-of-Way Agreement, authorizing the issuance of funds for the purchase and closing costs and hiring American Government Services Corporation to close the acquisition will allow the County to close the transaction and take ownership of the parcel for the project.
RECOMMENDATION
Request Board approve the aforementioned Right-of-Way Agreement and authorize the issuance of funds in the amount of $1,800,000 for the purchase. Also, request Board approve hiring American Government Services Corporation to close the acquisition of the property and approve paying closing costs in the estimated amount of $12,000 for a total amount of $1,812,000.
FISCAL IMPACT
Funds are budgeted and available in Roads and Drainage 5-year CIP in the General Capital Fund.
CONTACT INFORMATION
R. Wade Allen, Director
Real Estate Services
863-534-2577